This case has been cited 1 times or more.
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2015-06-22 |
REYES, J. |
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| As clarified in Nacar v. Gallery Frames,[42] pursuant to Bangko Sentral ng Pilipinas-Monetary Board (BSP-MB) Circular No. 799 (Series of 2013), the legal rate of interest is currently at six percent (6%) regardless of the source of obligation.[43] Such new rate should be applied prospectively,[44] and the twelve percent (12%) legal interest shall apply only until June 30, 2013. Thereafter, the new rate of six percent (6%) per annum shall be the prevailing rate of interest. Nacar, thus, modified the previous guidelines laid down in Eastern Shipping Lines, Inc. v. Court of Appeals,[45] on the imposition of interest, to wit: II. With regard particularly to an award of interest in the concept of actual and compensatory damages, the rate of interest, as well as the accrual thereof, is imposed, as follows: When the obligation is breached, and it consists in the payment of a sum of money, i.e., a loan or forbearance of money, the interest due should be that which may have been stipulated in writing. Furthermore, the interest due shall itself earn legal interest from the time it is judicially demanded. In the absence of stipulation, the rate of interest shall be 6% per annum to be computed from default, i.e., from judicial or extrajudicial demand under and subject to the provisions of Article 1169 of the Civil Code. | |||||